Analyst notes completion of the Bitcoin miner capitulation phase

Charles Edwards, head of Capriole Investments, based on data from the Difficulty Ribbon indicator, concluded that the Bitcoin miner capitulation period has passed. In his words, it is “an excellent buying signal”.

Hash Ribbon buy signal!

The #Bitcoin miner capitulation has officially ended today, making it the 3rd longest capitulation in history at 71 days.

This capitulation zone was longer than 2021, and just two days shorter than 2018’s where price touched $3.1K pic.twitter.com/B3mMhKQPls

— Charles Edwards (@caprioleio) August 20, 2022

In his observations, the latest capitulation phase is the third-longest in history (71 days). It is longer than in 2021 but two days shorter than the 2018 figure.

Historically, Bitcoin’s miner capitulations have captured major price lows and been great buy-signals.

Miner capitulations that occur late cycle (at least 2 years after halving) and after cycle tops have been the most profitable long-term signals (eg. 2012, 2015, 2018). pic.twitter.com/5sgcnUffxR

— Charles Edwards (@caprioleio) August 20, 2022

“Historically, Bitcoin miner capitulations have fixed major price lows and served as excellent buy signals,” noted Edwards.

At the time of writing, the primary cryptocurrency is trading around $21,330. Over the past seven days, the price of digital gold fell by 12.7%, according to CoinGecko.

Earlier, Bloomberg strategist Mike McGlone described Bitcoin as oversold.

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